Whether you’re living in your parents’ basement, finishing up school in a college dorm, or couch surfing in a new city, saving for an apartment is no easy task.
Both habitual saving and exercising restraint when it comes to spending are required when determining how to save up for an apartment. Fiscal responsibility is a skill that is honed over time. It’s important to start the process early so that you’re on track down the road.
Use the following budgeting tips and advice when figuring out how to save up for an apartment. Hopefully, these tips and trips will help you meet your savings goal without having to live on a frugal diet of ramen noodles and peanut butter sandwiches!
Why Is It Important To Save For An Apartment?
Moving into an apartment is an exciting milestone in life, but it can be quickly overshadowed by anxiety and stress if you do it without properly saving.
Saving for an apartment involves a lot more than just knowing how much your rent will be each month. On top of moving costs and the cost of a security deposit, you’ll need to furnish your new space, purchase the apartment essentials needed to make the space functional, and leave a small cushion for unexpected expenses.
Saving for an apartment will help remove unnecessary stress stemming from financial insecurity and significantly reduces the possibility that you’ll go into debt paying your rent.
What Does Saving For An ApartmentInvolve?
Saving for an apartment isn’t necessarily easy, but following this plan will set you up to move into your dream apartment community.
Establish a strict budget.
The key to successfully saving for an apartment creating a budget…and adhering to it. There are a few steps involved in the budgeting process:
- Evaluate your income. The most obvious source of income is your take-home pay from your job. But don’t forget to include additional income streams as well. Some other examples of earnings to incorporate in your budget could be interest earned, dividend payments, court-ordered support, or capital gains from stocks and bonds.
- Record your spending habits. For a month or two simply record what you spend. You’d be surprised how quickly a few small purchases (breakfast at the drive-through, a lotto ticket each week, in-app purchases on your phone or tablet, etc. can add up.) By documenting your expenditures, you will get a clear picture of where your money is going each month.
- Determine what you can’t live without. Make a list of all the items that you absolutely have to spend money on each month. That might include gas for your car, toiletries, medical insurance, groceries, etc. Only include what is absolutely necessary. Don’t forget that savings and an emergency fund are essentials as well.
Cut non-essential expenses.
Living the good life is alluring for sure, but when you’re trying to figure out how to save for an apartment, your strategy might need to involve more aggressive tactics to reach your goal fast. One way to save quickly is temporarily adjusting your spending habits.
Aspiring renters should reflect on their current spending habits and decide which expenses are essential and which aren’t. For example, the average American spends around $265 per month solely on food away from home.
There are plenty of easy tactics to curb your monthly expenditures. Cooking at home, taking advantage of the books at your local library, enjoying free outdoor activities, switching to generic instead of brand name, etc. are all ways to accelerate the process of saving for an apartment.
How Much To Save Before Renting An Apartment
Before signing a lease, you should consider the totality of the commitment. Even if you have a steady job with a reliable income, you don’t want to live in an apartment that slowly drains your savings.
Not only should you live within your means, but you should live in an apartment community that allows you to save some of your monthly earnings as well. A good rule of thumb is to spend a fixed percentage of your income on housing. The general best practice is that no more than 30% of your gross monthly income should go to rent.
Exactly how much to save before renting an apartment is dependent upon your salary and the rental rates where you want to reside. If you earn $4,500 (before taxes) per month, then you shoot to spend no more than $1,350 per month on rent. However, you’ll need more than one month’s worth of rent in the bank when saving for an apartment.
Don’t forget to account for the security deposit, moving costs, furniture, monthly utilities, and renter’s insurance. It’s also recommended that you choose a trustworthy property management company that offers all-inclusive rent, so you’ll never feel nickel and dimed for your must-have apartment amenities.
Saving For An Affordable Apartment At Southern Management Is Easy
Whether you’re just starting out or getting back on your feet after trying times, Southern Management is here to support you on your journey.
Our knowledgeable team members are more than happy to sit down with you before signing your lease. We can help you work out a financial plan to ensure you feel confident renting an apartment. It’s services like this that encourage our residents to stay at one of our 75 communities long-term. The Southern Management Team has a one-of-a-kind commitment to resident care.